NEW YORK (dpa-AFX) – The stock exchanges in New York rose on Tuesday before important business figures from large US technology groups and the upcoming interest rate decision by the US Federal Reserve. The Dow Jones Industrial recently rose by 0.25 percent to 35,499.58 points. The leading index is thus at its highest level since the beginning of February. The market-wide and more meaningful S&P 500 gained 0.43 percent on Tuesday to 4574.18 points.
The tech-heavy Nasdaq 100, which lagged the standard a little the previous day, rose 0.91 percent to 15,588.39 points. After the stock market closed, the tech heavyweights Alphabet and Microsoft, among others, presented quarterly reports, and the shares of both groups recently posted increases of 1.6 and 1.2 percent, respectively.
With a view to the upcoming tech numbers, analyst Konstantin Oldenburger from broker CMC Markets warned that, unlike Tesla and Netflix, the weakness after their quarterly figures should not be repeated, as the narrative could then change and the hype about artificial intelligence could reach its preliminary peak. “And this is where the fantasy slumbers, from which a lot of price gains have emerged in the past few months.”
In addition to the quarterly figures, investors’ attention is increasingly focused on the Fed, which is very likely to raise its key interest rate again on Wednesday. After the interest rate pause in June, most economists expect an increase of 0.25 percentage points. Interest rates are currently in a range of 5.00 to 5.25 percent. Signals for further action are eagerly awaited. Many economists assume that the rate hike in July could initially have been the last. Rising interest rates tend to weigh on equities because other, lower-risk investments then become more attractive.
At the top of the Dow Index, 3M gained 5.3 percent. The conglomerate exceeded expectations with its second-quarter profit and then raised its full-year outlook. The cost cuts appear to be having an effect.
The chemical group Dow frightened the market with a significant drop in sales and earnings. But analysts had expected worse. The papers increased by 2.5 percent.
Bad news from Pratt & Whitney caused shares in parent company Raytheon Technologies to plummet by 12.4 percent. A lack of material causes problems for the daughter. This is due to possible problems with a metal powder used to manufacture certain engine parts.
General Electric is more confident than previously on adjusted free cash flow, which pushed the conglomerate’s shares up 6.1 percent.
The carmaker General Motors (GM) was unable to convince investors with a jump in profits and a renewed earnings target: the shares fell by 4.3 percent.
The most recent correction continued for Spotify titles, which have been doing well since the beginning of the year: shares in the audio streaming service fell by a further 14.4 percent. Apparently, the missed sales expectations weighed more heavily on investors than the surprisingly good development in user numbers. Customer growth is bought at a high price, according to DZ Bank./ajx/he
2023-07-25 17:55:09
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